Aussies use handout to clear credit card debt

Despite prime minister Kevin Rudd’s earnest plea for Aussies to go on a bit of a spree with the free cash given out in December, most people chose to use it to clear their credit card debts.

According to figures from the Reserve Bank, nearly $3 billion of the total $8.7 billion handout went straight into clearing credit card debt, with figures from December showing that repayments on credit cards reached a whopping $21 billion.

The Age reports that normally, Aussies will clear a collective $3 billion in credit card debt over the course of a month.

We will have to wait and see whether this record credit card clearance is repeated in April, when Australians earning less than $100,000 will be able to claim another $900 from Mr Rudd.

However, those eager to wipe off credit card debt or take advantage of low-interest home loans and get ahead on their mortgage, the Tax Office has warned that the free dough will only be available who have filed their taxes on time.

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